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Test Bank for Retail Management A Strategic Approach 11th True - False Questions Retailers and their suppliers have common viewpoints relating to channel control, the intensity of distribution, and the setting of final retail prices True False A retailer uses multiple retail formats in multi-channel retailing True False Relationship retailing focuses on the need for continuous attraction of new customers True False The largest retailer in the United States (in terms of sales) is Sears Holding True False Retailers purchase goods in large quantities and sell them in small quantities This represents an important aspect of the retailing concept True False The sorting process allows manufacturers to specialize in a narrow product line, while allowing final consumers to have onestop shopping True False Generally, a manufacturer can maximize its long-run sales potential through the use of intensive distribution True False A retailer can appeal to diverse target markets through multichannel retailing True False A retailer's customer service strategy includes both tangible and intangible elements True False Store atmosphere, retail image, and customer service are aspects of the total retail experience True False Mail and telephone orders, direct selling, and vending machine sales are not part of retailing True False The retailing concept is comprised of customer orientation, coordinated effort, value- driven, and goal orientation True False While close cooperation between manufacturers and retailers is fostered in intensive distribution, this form of distribution generally does not allow a manufacturer to achieve maximum sales for a product True False Exclusive distribution decreases price competition among retailers True False A customer's satisfaction with a retailer's customer service depends on expectations and past experience True False The underlying principle of a strategic approach to the study of retailing is that a retail firm needs to plan and revise its plans continually in order to adapt to a changing environment True False An institutional approach to the study of retailing concentrates on the activities that retailers must perform True False Through the retail concept, the retailer bridges the gap between the needs of manufacturers and customers True False A focus on long-run customer satisfaction is an important component of relationship retailing True False Manufacturers and retailers have a closer partnership in the marketing of goods and services in selective distribution than in exclusive distribution True False Only large firms can successfully utilize a retail strategy True False Manufacturers, wholesalers, and importers perform retail activities when they sell goods and services to final consumers True False The placement of in-store displays in high-traffic areas is designed to increase impulse purchases True False Retailer support for a manufacturer is greatest in exclusive distribution 1 True False Channel conflict is minimized in intensive distribution True False Retailing is an intermediate stage in the channel of distribution True False Retailers seek to increase impulse purchases through point-ofpurchase displays and attractive store layouts True False A retailer that uses a "bricks-and-clicks" strategy consisting of traditional stores, as well as a Web site, engages in multi-channel retailing True False Channel relations are generally smoothest when intensive distribution is used True False Through the sorting process, a retailer collects an assortment of goods and services from various suppliers and offers them to customers in small quantities True False Mutiple Choice Questions - Page A retailer sells to customers through traditional retail stores, mailorder catalogs, and a Web site This illustrates A) vertical integration B) the sorting process C) multi-channel retailing D) the importance of impulse retailing The first stage in development of a retail strategy should be to A) develop an overall long-run plan B) decide on the appropriate target market C) determine the type of business and specific orientation of the firm D) implement an integrated strategy All of the elements in a retail offering that encourage or inhibit consumers during their contact with a given retailer comprises A) store atmosphere B) the retail concept C) the total retail experience D) retail image A manufacturer seeking to maximize its sales should utilize distribution A) intensive B) dual C) exclusive D) selective The retailing concept is comprised of A) objectives, implementable actions, feedback, and strategy adjustment B) short- and long-term objectives, organization mission, and the development of a competitive defensible strategy C) customer orientation, coordinated effort, value-driven, and goal orientation D) niche strategy, cost leadership, and focus On the average, percent of every sales dollar goes to grocery stores as payment for the activities they perform A) 12 B) 18 C) 28 D) 50 Which of the following is not part of the total retail experience for a men's clothing retailer? A) offering store credit B) corporate form of ownership C) the store's atmosphere D) the brands carried The largest company in the world based on sales is A) ExxonMobil B) Sears Roebuck C) Wal-Mart D) Marks & Spencer Channel relations tend to be the smoothest in distribution A) exclusive B) selective C) intensive D) wide In exclusive distribution, suppliers enter into agreements with A) multiple retailers that designate the latter as the only companies in specified geographic areas that are allowed to carry certain brands and/or product lines B) one or a few retailers that designate the latter as the only ones in specified geographic areas to carry certain brands or product lines C) any retailer with ample credit that designates the latter to be allowed to carry certain brands and/or product lines D) a retailer stating that the retailer cannot carry any competing product lines as a precondition for receiving favorable discounts Which of the following activities does not fit within the scope of retailing? A) medical services to families B) direct-to-home sales C) vending purchases by factory workers D) sales to wholesalers Suppliers sell through a moderate number of retailers in distribution A) intensive B) dual C) exclusive D) selective A retailer collects an assortment of goods and services from various sources, buys in large quantities, and sells in small amounts to final consumers This is referred to as A) one-stop shopping B) the retail concept C) retail transactional efficiency D) the sorting process Which of the following is generally not considered a party in a typical channel of distribution? A) retailer B) final consumer C) wholesaler D) advertising agency About how many people are employed by traditional retailers in the United States? A) 11 million B) 16 million C) 25 million D) 34 million Competition among retailers selling the same goods and services is highest in which form of distribution? A) intensive distribution B) exclusive distribution C) selective distribution D) vertical integration A retailer often must limit its selection of brands in distribution A) wide B) intensive C) selective D) exclusive A retail strategy is A) the overall plan guiding a retail firm B) the choice and satisfaction of a target market C) an integrated effort by a retailer D) a goal-directed effort by a retailer The sorting process helps final consumers through A) allowing store credit B) providing one-stop shopping convenience C) operating long hours D) providing delivery services Which factor has had the greatest impact on the success of Target Stores? A) its low pricing strategy B) its development and use of a retail strategic plan C) its excellent physical distribution systems D) its outstanding customer service In 2007, the four largest retailing companies (in order of size from largest to fourth largest on the basis of sales) were A) Wal-Mart, Sears, Safeway, and J.C Penney B) Wal-Mart, Home Depot, CVS Caremark, and Kroger C) Wal-Mart, Kmart, Kroger, and Federated Department Stores D) Wal-Mart, Woolworth, Kroger, and Kmart Data on U.S retail employment understates actual employment because it does not include A) store or department managers B) part-time personnel C) seasonal employees and unreported workers in family businesses D) teenagers under 18 who are full-time students Retailers have increased their power in the channel of distribution due to A) the growing number of regional and national chains B) the growth of franchising as an alternative to independent ownership C) the increased market share of national brands D) shopping center contract provisions' limiting the range of goods to be sold In 2007, the 10 largest U.S retailers had average after-tax profits of about percent of sales A) 0.5 B) 1.0 C) 2.5 D) 3.5 Which statement concerning retailing is correct? A) Retailing activities must involve a store B) Retailing activities not have to include a retailer C) Retailing activities cannot be performed by a wholesaler D) Retailing activities involve goods, not services The sorting process helps manufacturers by A) paying on the basis of when goods are shipped, not sold B) offering an assortment of goods that are collected from a large number of suppliers C) enabling one-stop shopping D) buying large orders at one time Which statement concerning Target Stores' retail strategy is not correct? A) Target focuses on consumers with middle incomes, who are well educated B) Excellent customer service is an important part of Target's success C) Despite its success, Target has not done a good job of positioning itself D) Target has never lost sight of its discount niche The channel of distribution consists of A) the movement of goods and services from manufacturer to consumeruser B) all of the businesses and people involved in the physical movement and transfer of ownership of goods and services from producer to consumer C) all independent intermediaries involved with the transfer of title of goods and services D) all middlemen involved with the physical movement of goods and services Point-of-purchase displays and the placement of goods in visible, high-traffic store locations are important in retailing because of the need to A) sell services to a broad target market B) generate impulse sales C) minimize the need for warehouse space D) limit pilferage to an acceptable level Which form of distribution has the effect of most severely limiting a manufacturer's long-run sales potential? A) intensive distribution B) selective distribution C) dual distribution D) exclusive distribution According to the Department of Commerce, annual U.S retail store sales are about A) $200 billion B) $1.5 trillion C) $3.5 trillion D) $5.0 trillion Manufacturers can increase their power in a distribution channel through A) operating their own retail facilities B) developing dealer brands C) expanding into foreign markets D) use of intensive distribution 69 Free Test Bank for Retail Management A Strategic Approach 11th Edition by Berman Mutiple Choice Questions - Page Retailers typically study prospective locations in terms of the characteristics of shoppers, neighboring retailers, pedestrian traffic counts by day of week and hour, and parking facilities This intensive analysis is due to the A) importance of impulse sales to all retailers B) long-term nature of retail leases C) high rent charged for store locations D) need to attract consumers to a store location Which retail strategy focuses on existing customers? A) the retail concept B) the functional approach to retailing C) relationship retailing D) transactional retailing Loss leaders, weekly promotions, an excellent location, and special events (such as cooking classes) are more common in retailing than in wholesaling because A) profit margins in retailing are higher than in wholesaling B) retailing is the final stage in the channel of distribution C) most retail customers must be drawn to a store location D) the average sale in retailing is smaller than in wholesaling The strategic approach to the study of retailing stresses A) retail institutions B) retail profits C) legal issues D) retail planning Which statement concerning retailing is not correct? A) Retailing involves both goods and services B) Retailing must involve a retailer C) Direct selling is part of retailing D) Retailing is the final stage in a channel of distribution A manufacturer seeking maximum retailer cooperation should utilize which form of distribution? A) exclusive distribution B) intensive distribution C) selective distribution D) dual distribution Which of the following is not an important characteristic of relationship retailing? A) the continuous monitoring of customer satisfaction B) the development and maintenance of a data base on all customers C) the seeking of long-term bonds with existing customers D) the continuous seeking of new customers to replace lost customers Channel cooperation and control is greatest when A) intensive distribution is utilized B) selective distribution is utilized C) exclusive distribution is utilized D) manufacturers own and operate their own retailing facilities The potential for channel conflict (due to the high power of a retailer relative to a manufacturer) is least in which form of distribution? A) dual distribution B) exclusive distribution C) selective distribution D) intensive distribution Consumers are able to shop in a "one-stop shopping environment" due to the A) increased size of stores B) development of franchising C) sorting process D) development of prototype stores An optical chain purchasing goods from dozens of vendors (these include frame companies, lens firms, sunglass manufacturers, and eyeglass case firms) demonstrates A) a channel of distribution B) economies of scale C) vertical integration D) the sorting process Without the sorting process, final customers would A) not purchase goods on impulse B) not receive credit C) have to shop at individual manufacturers D) reduce the number of transactions necessary to complete a purchase A characteristic of a retail strategy is its A) attention to personnel availability and training B) attention to short-run success C) systematic assessment of the environment to ascertain opportunities and threats D) focus on past operations and success Strategic planning in retailing A) can be practiced by both small and large retailers B) requires a comprehensive computer-based marketing information system to be properly implemented C) should focus on short-run opportunities D) requires the use of planning specialists with MBA degrees to succeed An off-price chain specializing in fashion merchandise at deep discounts uses low-rent locations, self-service merchandising, and inexpensive fixtures Alterations are not available and merchandise can be returned for store credit only The chain illustrates which element of the retailing concept? A) customer orientation B) coordinated effort C) competitive intelligence D) goal orientation Retail price competition is generally highest in distribution A) dual B) exclusive C) intensive D) selective A characteristic of relationship retailing is A) reliance on a data base of current customers B) search for new customers C) constant bargaining between customers and suppliers D) low trust among channel members A major disadvantage of the retailing concept as applied to the development of a retail strategy is that it does not focus on A) the development of a coordinated strategy B) a firm's competitive advantages C) specific objectives such as market share or return on sales D) the satisfaction of a firm's target market In which form of distribution retailers typically agree to limit their assortment of brands in a selected product category? A) intensive B) dual C) exclusive D) selective An example of the contrasting viewpoints of retailers and manufacturers is a A) manufacturer-sponsored cooperative advertising program B) manufacturer attempting to increase national brand display space C) manufacturer sponsoring training programs for retail sales personnel D) manufacturer sponsoring point-of-purchase materials The identifiable, but sometimes intangible, activities undertaken by a retailer in conjunction with the basic goods and services it sells is referred to as A) the retailing concept B) the total retail experience C) relationship retailing D) customer service The functional orientation to the study of retailing stresses A) retail activities B) retail planning C) adaptation of retail strategy to match the retail environment D) opportunities and constraints in decision making The training of personnel to sell related merchandise (such as batteries, a case, and extra film with a camera) represents an attempt to maximize A) impulse sales B) manufacturer cooperation C) self-service merchandising D) the number of customers drawn to a store The selection of an appropriate target market by a retailer relates to which element of the retailing concept? A) goal orientation B) customer orientation C) coordinated effort D) value orientation Which of the following illustrates a retail transaction? A) a supermarket purchasing a computer system to improve its inventory management B) a discount retailer signing a 10-year lease on a new store location C) a wholesaler selling new windows to a home improvement center for resale to homeowners D) an attorney purchasing a computer in conjunction with a hobby Point-of-purchase displays, self-service merchandising, and the use of high-traffic locations to place selected goods represents an attempt by retailers to A) control expenses B) increase the number of potential shoppers who enter a retail store C) reduce inventory levels D) increase impulse sales Retail price competition is generally lowest in distribution A) dual B) exclusive C) intensive D) selective Neither channel cooperation nor long-term sales potential is maximized in distribution A) vertical B) exclusive C) intensive D) selective The sorting process enables manufacturers to A) specialize in the production and marketing of a narrow product line B) vertically integrate C) increase their channel control over retailers D) dictate final selling prices to retailers The underlying principle of a strategic approach to the study of retailing is that a firm needs to A) be a low-cost provider B) base all of its decisions on retail research C) be aware of opportunities and constraints in decision making D) plan for and adapt to a complex, changing retail environment A retailer is able to appeal to different target markets, as well as reach consumers in multiple places, through engaging in A) Web sales B) multi-channel retailing C) relationship retailing D) vertical integration Convenience goods are generally marketed using distribution A) dual B) exclusive C) selective D) intensive Which statement concerning strategic planning is correct? A) Strategic plans can be best used by large retailers B) Strategic planning should be conducted on an annual basis C) Strategic plans should emphasize attracting customers via price-oriented promotions D) Strategic planning is a continuous process The use of customer loyalty programs by a hotel chain that grants rewards, such as room upgrades and free rooms to loyal customers, is an important part of A) the total retail experience B) relationship retailing C) customer service D) the retailing concept A tire retailer guarantees to match all advertised specials of competitors, includes installation and balancing in its quoted price, and specializes in well-known tire brands This illustrates which element of the retailing concept? A) value-driven B) customer service C) competitive intelligence D) goal orientation A retailer's focusing on store atmosphere, customer service, and exceeding a consumer's expectations is concerned with A) the total retail experience B) employee empowerment C) relationship retailing D) a value orientation The greatest advantage to a manufacturer's use of exclusive distribution is A) a high level of retail price competition B) close channel cooperation C) maximizing long-run sales potential D) convenience of location to customers ... 69 Free Test Bank for Retail Management A Strategic Approach 11th Edition by Berman Mutiple Choice Questions - Page Retailers typically study prospective locations in terms of the characteristics... be drawn to a store location D) the average sale in retailing is smaller than in wholesaling The strategic approach to the study of retailing stresses A) retail institutions B) retail profits... illustrates a retail transaction? A) a supermarket purchasing a computer system to improve its inventory management B) a discount retailer signing a 10-year lease on a new store location C) a wholesaler